World View & Market Commentary. Forest first; Trees second. Focused on Real & Knowable facts that filter through the "experts" fluff and media hyperbole. Where we've been, what the future may hold and developing a better way forward.

Thursday, March 19, 2009

Here is Karl Denninger’s take on the possible outcomes of Bernanke’s stunt yesterday. It is sobering, and I believe in the realm of possible outcomes. It is the result of the negative spiral I mentioned where people sell their bonds and treasuries to the only bidder left – the U.S. government.

He is correct that wages cannot keep pace with the onslaught, as I’ve mentioned because we are in an “open” system where our capital and international capital is free to leave. Thus, the result may be the opposite of the hyper-inflation most people expect. He explains this well, make sure you read this ticker.